The Civil aviation industry of India has emerged as one of the fastest growing industries in the world during the last four years. India is currently considered the third largest domestic civil aviation market in the world and is expected to overtake UK to become the third largest air passenger market by 2024.

India’s passenger traffic is growing at a rate of around 20% a year. During April 2018- February 2019 India’s domestic aircraft movement was around 1.98 million and on the other side international aircraft movement was around 0.42 million. To cater to the rising air traffic, Indian government has been working profusely towards increasing the numbers of airports.

It is true, that air travel in India is booming, but while air passenger numbers are booming, the sector itself seems to be hurtling towards bust. There are various factors which are responsible for this, like increase in Aviation turbine fuel (ATF) prices, competitive ticket pricing, not a single airline in India is earning more than what they are actually incurring.

Most of the airline companies are either suffering losses or just earning what they have invested. Many airline companies like Kingfisher, Sahara and recently in news Jet Airways have shut down their operations. According to the latest Kapa study, the Indian aviation Industry is expected to lose 1.65$ -1.90$ billion this financial year.

Ironically, Indian aviation companies are in trouble at a time when global airlines are expected to make net profits of more than $30 billion. Indian Government needs to make easy and flexible laws, by reducing the tax burden on aviation fuels, to safeguard the identity of the Indian Aviation sector.

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Profile of Esha Patel
Esha Patel   •  4y  •  Reply
Read your blog! I’d really appreciate if you could check out my blogs too and I’d definitely return the favour ;)